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Outline the reasons why gross domestic product is not a good measure of material well-being of the people.

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- It does not look at the distribution of income within the economy.
- Increased national income could be due to increased number of working hours, implying that people do not have leisure which adversely affect their health conditions.
- It is a measure of production and consumption which are not measures of welfare of people.
- It does not consider deterioration to the environment through air and water pollution, deforestation etc.
- Is a statistical device that measure changes in economic activity and thus does not deal with quality of life.
- It does not account for varying demands for different countries.
- There are inaccuracies in computing statistical data thus figures for such income are suspect.
- Changes in GDP figures can be due to changes in prices over time but not due to changes in output.

Kavungya answered the question on August 10, 2021 at 06:16

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Outline the reasons why gross domestic product is not a good measure of material well-being of the people.

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